Final answer:
The statement regarding the income summary account and distribution of profits is false, as it is used to close revenues and expenses, not to record profit distribution. Proprietors in proprietary colonies had roles beyond collecting profits. The market revolution indeed brought about major social and economic changes in the United States.
Step-by-step explanation:
The statement that the income summary account is credited in the entry to record distribution of profits is false. The income summary account is actually used to close out revenues and expenses at the end of a fiscal period. Profits or net income are determined by netting expenses against revenues in the income summary. After this, the balance (net income or loss) is closed to the owner's equity, or retained earnings in the case of a corporation. Distributions or dividends are a separate transaction where the retained earnings account is debited to reflect the payout to shareholders or owners.
Exercise 5.2.2
The claim that in a proprietary colony, the Proprietors have no responsibilities except to collect the profits is false. Proprietors in such colonies had various roles and responsibilities including governance, establishing laws, and generally managing the colony's affairs.
Exercise 11.3.1
The statement that the market revolution brought many social and economic changes to the United States is true. The market revolution was a time during the 19th century that saw a significant shift towards a market-based economy with rapid expansion in industrialization and infrastructure, which indeed brought a multitude of social and economic changes.